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 And since Karla in Council Bluffs, IA asked about the envelope stuffing business in Ask TaxMama Issue #188 ... You can just bet we got comments about that! <Tax Pros Reply> Tom Blair in Florida tells us: About the lady wanting to open a home mailing program in Council Bluffs, IA Tell her to check out the company thoroughly through the BBB ... here in Florida there have been a dozen scams that cost the unwary thousands of dollars. It works like this: they sell the person envelopes, mailing lists, etc. Then the person sends mail to the businesses on the list and offer them her home mailing services. Fewer than 1% of those businesses mailed to respond with inquiries, but nearly every one of them puts her on their mailing lists for 'junk mail' . Nine out of nine of my clients who tried this lost real money ... that's a 100% failure rate within two years. If she has to 'invest' any of her own money into the operation, it's 99% certain to not be legit. My gramma always told me: "If you have to buy a job, buy one that pays you enough to make it a business instead of an investment." Another danger: IRS treats these efforts as 'hobby' and not-for-profit at audit unless she keeps exceptionally great records. This scam is commonly thrust upon stay-at-home-moms and the physically challenged...when a machine can fold letters and stuff envelopes at the rate of thousands per hour, only those businesses wishing to send a couple of hundred pieces of mail would consider an hiring an individual to perform that function. Please warn her to not invest any money in the enterprise without first checking it out with the BBB and possibly even with her local television station with a consumer investigator program. In this part of Florida, a fellow named Ken Amaro on Channel 12 in Jacksonville, Florida has addressed this issue about stuffing envelopes ... it hurt every person who tried it financially (and otherwise) in his expose' earlier this year. Sincerely, Tom 'the TAXMAN' Blair  |
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